New York, NY Tuesday, February 13, 2024 – Bankrupt cryptocurrency lender Genesis Global Capital filed a motion with the U.S. Bankruptcy Court for the Southern District of New York on Friday, seeking approval to sell approximately $1.4 billion worth of shares held in various trusts. 1
The proposed sale includes shares in the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG).
Proceeds from the sale are intended to fund ongoing operations and potentially repay creditors.
The move has drawn mixed reactions, with some analysts expressing concerns about potential market impact and others viewing it as a necessary step for Genesis’s financial stabilization.
The largest portion of the proposed sale involves nearly $1.4 billion worth of GBTC shares, representing a significant chunk of Genesis’s holdings. The company also seeks to sell $165 million in ETHE shares and $38 million in ETCG shares.
According to the court filing, Genesis aims to use the proceeds from the sale to fund its ongoing operations and potentially repay some of its debts to creditors. However, the proposed sale has raised concerns about its potential impact on the cryptocurrency market, particularly Bitcoin, given the substantial number of GBTC shares involved.
It should be noted, however, that the parent company, Digital Currency Group (DCG) opposed Genesis’ Chapter 11 bankruptcy plan, citing unequal treatment of a small group in the first week of February.
- Bankrupt cryptocurrency lender: https://www.wsj.com/livecoverage/stock-market-today-dow-jones-earnings-02-05-2024/card/genesis-global-wants-to-sell-1-4-billion-of-grayscale-bitcoin-trust-aJFdXioqoKiLuz8ZvNIT[↩]
